Click to play videoNew Delhi: Ailing national carrier, Air India, is planning to get back on its feet. The company's Chief Managing Director Arvind Jhadav admitted there was a cash flow problem, but also charted out the Maharaja's course of action in the future.
The airline is now aiming for a turn-around in 36 months, a turn-around that will hinge on some rather radical changes. For instance, there will be a new focus on low cost carriers for high density routes, starting with domestic low cost carriers in nine months.
Arvind Jadav has confirmed that the airline is looking at the low cost carrier model to revive the airline.
"We are a legacy carrier, we are a full service carrier, but now we will be looking at low cost carrier model," he said.
"This will improve our bottomline. We expect to benefit Rs.180-200 crore," he added.
The loss-making Air India has also committed before a committee of secretaries, which is looking into its financial health, that it would achieve a turnaround within 24-36 months.
"NACIL (National Aviation Co of India Ltd that owns the carrier) will have to change the way it does its business and we will do it. Our top priority is execution and accountability," Jadhav said while outlining releasing the revival roadmap of the carrier for the next 36 months.
There are also plans to establish an Air India IPO and raise additional finds in the next 18 months.
The airline plans to tackle immediately the problem of landing delays and will improve ground handling.
It will also re-evaluate the purchase of new aircraft and will attempt to phase out existing planes with more fuel efficient ones.
Refuting reports that Air India was looking for a bailout package from the government, he said: "We have a Rs 60,000-crore debt. We have only asked for an opinion from the government, which is also our stakeholder."
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